HC Deb 07 June 1988 vol 134 cc706-7
7. Mr. Cran

To ask the Secretary of State for Employment what was the increase in productivity during the three months to January 1988 and over the same quarter to January 1987.

Mr. Cope

Productivity in manufacturing, as measured by output per head, increased by 1.6 per cent. in the three months to January 1988. In the three months to January 1987 it fell by 1.1 per cent.

Mr. Cran

Does my right hon. Friend agree that although the immediate prospects for British industry are extremely rosy, those prospects depend on industry's ability to contain its unit labour costs? If it does not do that competiveness will deteriorate which will mean that orders will be lost and, worst of all, jobs will be lost. What urgent advice does he have for employers and the TUC?

Mr. Cope

I certainly agree with the first part of my hon. Friend's remarks. He asked what advice I had. The watchwords for everyone concerned with pay bargaining must be realism and flexibility, but the point on this question is that improved productivity pays for real pay rises.

Mr. Rowe

Does my hon. Friend agree that some of the great advances in productivity that we so much need come from the elimination of repetitive tasks by machinery, and that in that process a number of people who at present find it quite easy to work will find it increasingly difficult to hold down the jobs? As productivity changes, will my hon. Friend give an assurance that he will keep under review the medical criteria by which people are adjudged to be fit or unfit to work?

Mr. Cope

Yes, but I would also point out that that is why training is so important, particularly the employment training programme that we discussed earlier.